For Each of the Following Statements Regarding the Satisfaction of Transfer

question 21

Essay

For each of the following statements regarding the satisfaction of transfer pricing criteria,identify whether you would expect the transfer pricing method to meet the criteria.Provide a 'yes','no' or 'sometimes' for each situation.

a.Market-based transfer pricing achieves goal congruence.
b.Cost-based transfer pricing achieves goal congruence.
c.Negotiated transfer pricing achieves goal congruence.
d.Market-based transfer pricing motivates management effort.
e.Cost-based transfer pricing motivates management effort.
f.Negotiated transfer pricing motivates management effort.
g.Market-based transfer pricing is useful for evaluating subunit performance.
h.Cost-based transfer pricing is useful for evaluating subunit performance.
i.Negotiated transfer pricing is useful for evaluating subunit performance.
j.Market-based transfer pricing preserves subunit autonomy.
k.Cost-based transfer pricing preserves subunit autonomy.
l.Negotiated transfer pricing preserves subunit autonomy.

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Definitions:

Heterozygote Advantage

A genetic phenomenon where individuals heterozygous at a particular gene locus have a higher fitness than either of the homozygous forms.

Evolutionary Change

The process through which species undergo modification and diversification over generations due to natural selection, genetic drift, and other mechanisms.

Tolerant

Tolerant describes an organism's ability to withstand or survive within a range of environmental or situational conditions.

Mutations

Changes in the DNA sequence of an organism's genome, which can lead to variations in phenotype and can be inherited by future generations.